Income Tax Filing: ITR-3 & ITR-4 Updated Return Filing Window Opens for Two AYs
If a tax proceeding (assessment, reassessment, revision, etc.) has been finished or is still continuing for that assessment year, an updated return cannot be filed
The Income Tax Department has announced that for two Assessment Years (AYs), the filing window for updated income tax returns (ITR-U) in Forms ITR-3 and ITR-4 is open. An updated return (ITR-U) enables taxpayers to file a return if they missed the initial and belated deadlines, or to remedy errors or omissions in a previously filed return.
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The updated return concept was created to encourage voluntary tax compliance. Through the payment of an additional fee, it allows taxpayers to make corrections to their tax returns within a specified time period. Form ITR-U and the corresponding ITR form for the year in question must be submitted with the ITR-U.
ITR-3 and ITR-4: Who Can File?
Hindu Undivided Families (HUFs) and individuals who earn money from a company or profession and do not use the presumptive taxation scheme are required to file ITR-3. It is also intended for people with a variety of income streams, including as capital gains, house property, salaries, and other sources.
For resident persons, HUFs, and partnership firms (except from LLPs) who have chosen the presumptive taxation plan under Sections 44AD, 44ADA, or 44AE of the Income Tax Act, ITR-4 (Sugam) is a simplified form. No more than ₹50 lakh can be earned overall.
Within 24 months of the conclusion of the applicable assessment year, an amended return may be submitted. This window has been extended to 48 months from the end of the relevant assessment year as of the current fiscal year. There is an extra tax obligation when filing an amended return.
The additional tax is 25% of the total tax and interest owed if it is lodged within a year of the end of the applicable AY. The additional tax is 50% of the total tax and interest owed if it is lodged after 12 months but within 24 months of the end of the applicable AY. The additional tax is 70% for returns that are filed between 36 and 48 months.
The ITR-U cannot be used to request a refund or enhance the amount of a refund; it may only be used to record extra income. If a tax proceeding (assessment, reassessment, revision, etc.) has been finished or is still continuing for that assessment year, an updated return cannot be filed.
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